The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

What the Heck Is Going On in China?

By Jessica E. Lessin · Jul 31, 2021 7:45am PDT · 3 comments

It’s been a few months of startling headlines out of the China tech sector as the government has initiated an unprecedented crackdown across all corners of China’s tech economy. More on why it is happening later—first let’s consider some of the carnage. It’s been a few months of startling headlines out of the China tech sector as the government has...

Microsoft CEO Satya Nadella. Photo by Bloomberg.

Microsoft’s Dubious Cloud Growth Tactic

By Martin Peers · Jul 30, 2021 5:00pm PDT · 4 comments

One of the more eyebrow-raising stories of this week, in a week full of big tech news, was that Microsoft is considering investing in India-based hotel chain Oyo. If true—and Microsoft declined to comment on the report, which appeared first in TechCrunch—it would be a truly bizarre use of the software giant’s cash resources. Forget, for a... One of the more eyebrow-raising stories of this week, in a week full of big tech news, was that...

Nvidia CEO Jensen Huang. Photo by Bloomberg

China Antitrust Officials Delay Review of Nvidia’s $40 Billion Arm Acquisition

By Josh Sisco · Jul 30, 2021 6:00am PDT · 2 comments

It’s not just Chinese tech companies that are facing difficulties with China’s ruling party. Take Nvidia’s $40 billion takeover of chip designer Arm. While China’s competition regulators have been talking to the two companies since early this year, the agency’s formal review hasn’t even started yet, according... It’s not just Chinese tech companies that are facing difficulties with China’s ruling...

Robinhood co founders Baiju Bhatt, left, and Vladimir Tenev, walk on Wall Street following their company's IPO. Photo by AP

Robinhood’s Dismal Opening Is a Telling Sign

By Martin Peers · Jul 29, 2021 5:00pm PDT · 2 comments

Robinhood co founders Baiju Bhatt, left, and Vladimir Tenev, walk on Wall Street following their company's IPO. Photo by AP

Robinhood’s Dismal Opening Is a Telling Sign

By Martin Peers · Jul 29, 2021 5:00pm PDT · 2 comments

The stock market may be at record highs, but there were plenty of red lights flashing today. The most glaring of these would have to be the dismal opening day performance of Robinhood, the company most obviously associated with the post-Covid bull market. After pricing at the bottom end of its preliminary range, the stock fell sharply shortly... The stock market may be at record highs, but there were plenty of red lights flashing today. The...

Photo by Bloomberg

Creator Economy

Can TikTok Be Knocked Off? Comments By Facebook, Snap and YouTube Point to ‘No’

By Kaya Yurieff · Jul 29, 2021 4:00pm PDT

Can anyone catch TikTok? YouTube, Instagram and Snap have each tried to adapt to the paradigm shift caused by the ByteDance-owned short-form video app, which took the world by storm in the past few years. They’ve given little indication that people actually like their TikTok clones.On a conference call with analysts on Wednesday, Facebook CEO ... Can anyone catch TikTok? YouTube, Instagram and Snap have each tried to adapt to the paradigm...

Ramp co-founders Karim Atiyeh (left) and Eric Glyman. Photo courtesy of Ramp.

Founders Fund, Iconiq Value Ramp at $3.8 Billion in New Funding Round

By Kate Clark · Jul 29, 2021 3:25pm PDT

Corporate credit card startup Ramp is raising its fourth round of venture funding in under eight months, underscoring how back-to-back fundraising rounds—with relatively little business progress in between—is becoming the norm for startups in hot fields such as financial services. Founders Fund is leading a new funding round that... Corporate credit card startup Ramp is raising its fourth round of venture funding in under eight...

Tax Crackdown; Robinhood’s Rough Start; The Graph Grows

By Hannah Miller · Jul 29, 2021 3:05pm PDT

A bipartisan proposal that would deliver hundreds of billions of dollars in infrastructure improvements in part through stronger tax enforcement on cryptocurrencies has, unsurprisingly, put some in the crypto world on edge.The bill would aim to raise $28 billion from crypto holders by tightening reporting thresholds, including requiring... A bipartisan proposal that would deliver hundreds of billions of dollars in infrastructure...

Chart: Mike Sullivan

BlackRock, Fidelity, Vanguard Among Most Exposed to China Tech-Stock Volatility

By Juro Osawa, Shai Oster and Aidan Ryan · Jul 29, 2021 1:10pm PDT · 1 comment

Chart: Mike Sullivan

BlackRock, Fidelity, Vanguard Among Most Exposed to China Tech-Stock Volatility

By Juro Osawa, Shai Oster and Aidan Ryan · Jul 29, 2021 1:10pm PDT · 1 comment

Money manager BlackRock and mutual fund managers the Vanguard Group and Fidelity are among six Western institutional investors who—if their holdings have remained the same since the first quarter—will have lost some $15 billion collectively in some of the biggest U.S.-listed China tech stocks that have tumbled in the wake of... Money manager BlackRock and mutual fund managers the Vanguard Group and Fidelity are among six...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

Wall Street’s Question for Facebook: How Much Is the Metaverse Worth?

By Mathew Olson · Jul 29, 2021 11:00am PDT

Earlier this week, I gave Mark Zuckerberg some credit for talking about the metaverse without relying on speculative, buzzword-y language. In fact, compared to some of Facebook’s vague talk around its AR/VR hardware, Zuckerberg’s thoughts on what the metaverse is and what people will use it for have been clear, even if it’s a bit basic.Even so,... Earlier this week, I gave Mark Zuckerberg some credit for talking about the metaverse without...

Photos by Bloomberg; Shutterstock. Art by Mike Sullivan

Amazon’s Roads to Nowhere

By Paris Martineau · Jul 29, 2021 6:01am PDT

For months, residents of Margo Drive, a narrow residential street on the outskirts of Charlotte, N.C., have puzzled over this question: Why do gigantic semitrucks hauling cargo for Amazon keep rumbling down their one-lane, dead-end road? While Amazon has a warehouse nearby that opened late last year, its entrance is located through an impassable... For months, residents of Margo Drive, a narrow residential street on the outskirts of Charlotte,...

FTC Chair Lina Khan. Photo by Bloomberg

FTC’s Khan Accuses Big Tech of Promoting Fraud, Targets S. 230

By Martin Peers · Jul 28, 2021 5:02pm PDT

Lina Khan ratcheted up the rhetoric against big tech on Wednesday, accusing digital platforms owned by “some of the world’s largest companies” of promoting fraud. Gee, who could the FTC chair be talking about? What she said next should make it clear, if there was any doubt: “Business models singularly focused on scale and engagement coupled with... Lina Khan ratcheted up the rhetoric against big tech on Wednesday, accusing digital platforms...

Photo by Bloomberg

Bringing Order to the Chaos of Influencers’ Hotel Discount-Seeking

By Kaya Yurieff · Jul 28, 2021 4:17pm PDT

Photo by Bloomberg

Creator Economy

Bringing Order to the Chaos of Influencers’ Hotel Discount-Seeking

By Kaya Yurieff · Jul 28, 2021 4:17pm PDT

For several years, hotels have found themselves in awkward situations with social media influencers who contact them for free rooms in exchange for posts that promote their properties. Some interactions between ornery hotel owners and thirsty Instagram personalities have even gone viral.Instead of rolling his eyes, Michael Keriakos saw an... For several years, hotels have found themselves in awkward situations with social media...

Bitcoin After Inflation; Games Build Bridge to DeFi

By Hannah Miller · Jul 28, 2021 2:46pm PDT · 1 comment

Bitcoin prices got a lift after the Federal Reserve said on Wednesday that it was keeping interest rates near zero on Wednesday, despite rising inflation. The cryptocurrency is currently just under $40,000, an increase of 4.1% over the past 24 hours, a sign that at least some investors still see value in bitcoin as an inflation hedge.But Fed... Bitcoin prices got a lift after the Federal Reserve said on Wednesday that it was keeping...

People using VR to see scenes of Syrian cities being shelled. Photo by AP

New Study Casts Doubt on VR’s Value as Empathy Machine

By Mathew Olson · Jul 28, 2021 11:00am PDT

The conventional wisdom in tech is that virtual reality helps people empathize more easily. Like so many popular ideas in tech, this belief caught on thanks in large part to a TED Talk. In 2015, VR designer Chris Milk gave a presentation in which he said VR is “a machine, but through this machine we become more compassionate, we become more... The conventional wisdom in tech is that virtual reality helps people empathize more easily. Like...

Bumble signage at the Nasdaq when it went public in February. Photo by Bloomberg.

Where Has the IPO Lockup Gone? Tech Firms Trim Them Back

By Aidan Ryan · Jul 28, 2021 9:19am PDT · 2 comments

Some of last year’s most valuable tech initial public offerings, including Airbnb, Doordash and Snowflake, allowed pre-IPO shareholders to sell their stock before the traditional six-month waiting period expired. A more recent crop of listings, as well as Robinhood's imminent IPO, show the shift away from rigid lockups not only has... Some of last year’s most valuable tech initial public offerings, including Airbnb, Doordash...

Mike Sullivan

Revenue Surges at Google, Snap as Shift to Digital Ads Accelerates

By Sarah Krouse, Sylvia Varnham O'Regan and Sahil Patel · Jul 28, 2021 6:01am PDT

Mike Sullivan

Revenue Surges at Google, Snap as Shift to Digital Ads Accelerates

By Sarah Krouse, Sylvia Varnham O'Regan and Sahil Patel · Jul 28, 2021 6:01am PDT

Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to shift as much as 15% of the nearly $100 million it typically spends on TV advertising in the Americas to digital ads, according to a person familiar with the plans. The company and other large brands are accelerating a yearslong shift in spending toward... Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to...

Alphabet CEO Sundar Pichai. Photo by Bloomberg.

Big Tech's Boffo Performance

By Martin Peers · Jul 27, 2021 5:00pm PDT

Apple, Microsoft and Alphabet each reported impressively robust earnings results for the June quarter, demonstrating that these giant companies continue to go from strength to strength even as they face greater regulatory scrutiny. If there is any downside for the companies and their shareholders, it’s that the results will only concentrate... Apple, Microsoft and Alphabet each reported impressively robust earnings results for the June...

Pinterest CEO Ben Silbermann. Photo by Bloomberg

Creator Economy

Pinterest’s Interest in Creators Comes Back From the Dead

By Kaya Yurieff · Jul 27, 2021 4:45pm PDT

Pinterest doesn’t immediately come to mind as a top attraction for content creators. But like other content platforms, it’s been fighting for the attention of influencers by adding new ways for them to make money. On Tuesday, the app announced features allowing creators to earn commissions from directing Pinterest users to buy specific products... Pinterest doesn’t immediately come to mind as a top attraction for content creators. But like...

Stronghold Eyes $100 Million IPO; Binance Plots a Makeover

By Hannah Miller · Jul 27, 2021 2:16pm PDT

FTX and Binance aren’t the only cryptocurrency companies with dreams of going public. Bitcoin miner Stronghold Digital Mining filed for a $100 million initial public offering on Tuesday. It is the latest sign that despite growing environmental concerns about bitcoin’s power consumption, companies that fuel the calculations needed to verify... FTX and Binance aren’t the only cryptocurrency companies with dreams of going public. Bitcoin...

Facebook's Oculus Quest 2. Facebook on Tuesday suspended sales of the headset temporarily. Image courtesy Facebook/Oculus

Facebook Kicks Off a Metaverse Reorganization

By Mathew Olson · Jul 27, 2021 11:00am PDT · 2 comments

Facebook's Oculus Quest 2. Facebook on Tuesday suspended sales of the headset temporarily. Image courtesy Facebook/Oculus

Facebook Kicks Off a Metaverse Reorganization

By Mathew Olson · Jul 27, 2021 11:00am PDT · 2 comments

Mark Zuckerberg wasn’t kidding when he said last week he hopes Facebook will morph from a social media giant into a metaverse company. As the company revealed Monday, his ambition is beginning to have real effects on Facebook’s org chart.As reported, Facebook is creating a new Metaverse product group under Facebook Reality Labs. Andrew Bosworth’... Mark Zuckerberg wasn’t kidding when he said last week he hopes Facebook will morph from a social...